Chapter 1: What is Economics? - Vocab Flashcards Preview

Economics 101: Introduction to Microeconomics > Chapter 1: What is Economics? - Vocab > Flashcards

Flashcards in Chapter 1: What is Economics? - Vocab Deck (9)
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1
Q

Define Economics

A

A method of analyzing individual and social behavior.

2
Q

Define opportunity cost

A

The value of the next best alternative that must be given up when making a decision.

3
Q

Define a paradox

A

A contradiction between two principles that operate at different levels.

4
Q

Define the fallacy of composition

A

The fallacy of assuming what is true for an individual is true for a group.

5
Q

Define abstraction

A

Means ignoring many details so as to focus on the most important elements of a problem.

6
Q

Define theory

A

A theory is a deliberate simplification of relationships used to explain how those relationships work.

7
Q

Define correlation

A

Occurs when two variables tend to go up and down together.

8
Q

Explain the Post hoc, ergo propter hoc fallacy

A

The error of assuming if some event occurred before another then the first even CAUSED the second.

9
Q

Define economic model

A

A simplified, small-scale version of some aspect of the economy.